Tough times are all around, and apparently the IRS recognizes this as well. The IRS recently announced a series of new initiatives to " to help individuals and small businesses meet their tax obligations, without adding unnecessary burden to taxpayers. "

The changes center around how the IRS files liens against taxpayers for failure to pay their taxes, and include 5 key provisions:

Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens. This is being done to address inflation.

Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill.

Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement. This will apply to taxpayers with $25,000 or less of unpaid taxes, interest and penalties who have entered into a payment plan with the IRS. You can see a video about the Direct Debit Installment Program here.

Creating easier access to Installment Agreements for more struggling small businesses. This will be done by increasing the program participation threshold of unpaid taxes, interest and penalties from $10,000 to $25,000.

Expanding a streamlined Offer in Compromise program to cover more taxpayers. The income limits will be increased to $100,00, and the tax liability threshold doubled from $25,000 to $50,000.

A federal tax lien is a tool of the IRS whereby they have a legal claim to the property of a taxpayer who has not paid their taxes. It includes all property owned by the taxpayer at the time filed or after acquired. Needless to say, a federal tax lien dramatically decreases your credit worthiness.

Questions on addressing federal tax liens are handled through the Firm's Tax Department, or complete a request for more information to the right ------>